1. Field of the Invention
The present invention is related to an architecture that enables a wireless service provider, such as a wireless carrier, a Mobile Virtual Network Operator (MVNO), or a Mobile Virtual Network Enabler (MVNE), to manage financial risk within the context of a branded wireless offering.
2. Description of the Background Art
Many companies would like to enter the wireless services market, but there is a high barrier to entry. Technology is needed for customer management, order management, applications management, and billing management. Third-party interfaces are needed in order to outsource certain services, such as customer care and distribution and fulfillment. Subscriber interfaces are needed, such as call centers and web portals.
In response, new players have emerged in the wireless market. They are known as Mobile Virtual Network Operators (MVNOs). MVNOs offer branded wireless services, including the customer management, order management, applications management, and billing management technology mentioned above. However, MVNOs do not have wireless networks. Instead, MVNOs rely on network operators to provide the underlying equipment and communication capabilities, interfacing their systems with network operator systems as necessary. In general, each MVNO offers wireless services under a different brand.
An MVNO-enabler (MVNE) system acts as an intermediary between a brand system and a wireless network by acting as an interface between the brand system and the wireless network. Together, the MVNE system, brand system, and wireless network provide a branded wireless offering. The MVNE system controls customer management, order management, applications management, and billing management. Within the structure of a postpaid wireless offering, there are significant challenges with regards to retail processing of a branded wireless product. Ideally, the product must be suited for “grab and go” purchase where no sales assistance or consultation is necessary at the time of purchase. Also, the product must offer easy to understand communications for the customer and no special sales activity or “in-store technology” required.
The product must offer the typical, postpaid experience with which customers have become very familiar. Typical postpaid processing offers unlimited usage and monthly billing. The monthly recurring charge (MRC) is billed in advance, while all overages, per use fees, taxes, and miscellaneous other charges are billed in arrears.
A drawback with conventional postpaid processing techniques, however, is the requirement of a credit check for each customer at the purchase stage. The need for a credit check eliminates a large number of potential wireless customers and demands specialized processing at retail. To meet the needs of retailers for a simplified, “grab and go” sale, the product must be enabled for bundle minute offers and it must address several areas of financial concern without the need for a credit check on each customer.
When considering the financial risks that are present when engaging in the retail processing of a branded wireless offering, a financial risk manager must maintain product operation within the constraints and operational model of the retail brand. Key constraints of the retail brand can include retail return rate and inventory processing. Also, a financial risk manager must avoid credit risk for the wireless service provider and must offer a product that is simple enough to sell that it qualifies for typical retail margin structure, rather than specialized wireless industry commissions.
Within the context of a typical postpaid retail processing system, several areas of credit risk are present when considering the offer of branded wireless service. For the purpose of this general discussion of the background art, two specific examples of credit risk exposure for a branded wireless offering will be mentioned. A first exposure to credit risk occurs within the month of service, when a customer's wireless usage exceeds the pay-in-advance amount. A second exposure to credit risk can also occur after the billing cycle, when the branded wireless provider is awaiting customer payment. In a typical postpaid financial risk management system, credit risk is addressed by processing a credit check against each customer at the time of purchase.
When considering the procedures of typical postpaid financial risk management systems, addressing credit risk by simply processing a credit check against each customer poses significant drawbacks. There is a cost (of time and money) associated with running credit check against each new customer. Also, the possibility of fraud or non-payment is still a viable financial threat despite access to a customer's credit history.
What is needed is a cost effective and customer friendly method for managing financial risks within the framework of a branded wireless offering, which in turn enables the sale of a postpaid wireless product without specialized retail processing.